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orangecrush

Need a mortgage? Don't get pregnant...

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“If you are not back at work, it’s a huge problem,” said Rick Cason, owner of Integrity Mortgage, a mortgage firm in Orlando, Fla. “Banks only deal in guaranteed income these days. It makes sense, but the guidelines are sometimes actually harsher than they need to be.”

 

I disagree. The number of mothers who fail to return to work is high. Many families find that taking care of the child(ren) full time is a better value for them than the spouse returning to work. However, if they are in a recent mortgage that was based on two incomes, it could put the family in a difficult position. One that compromises their ability to fulfill their responsibility to the bank.

 

Bleeding-heart banking is what got us in this mess in the first place. Selling only to people truly capable of paying their obligations is the only thing that can get us out. Banks should have taken steps like these decades ago, but were pressured from our elected officials to do otherwise.

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Well, If bankers are only dealing with "guaranteed income".....

Then everyone is in a whole lot of trouble. ;)

 

Secondly, will this mean that they will be looking hard at anyone who is of child bearing years? Just because someone is not pregnant now, doesn't mean they won't be pregnant in 5 months or 2 years.

 

I, therefore, would consider their taking into consideration someone's pregnancy status at the time of applying for the loan as being discriminatory.

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“If you are not back at work, it’s a huge problem,” said Rick Cason, owner of Integrity Mortgage, a mortgage firm in Orlando, Fla. “Banks only deal in guaranteed income these days. It makes sense, but the guidelines are sometimes actually harsher than they need to be.”

 

I disagree. The number of mothers who fail to return to work is high. Many families find that taking care of the child(ren) full time is a better value for them than the spouse returning to work. However, if they are in a recent mortgage that was based on two incomes, it could put the family in a difficult position. One that compromises their ability to fulfill their responsibility to the bank.

 

Bleeding-heart banking is what got us in this mess in the first place. Selling only to people truly capable of paying their obligations is the only thing that can get us out. Banks should have taken steps like these decades ago, but were pressured from our elected officials to do otherwise.

Right, however how do you know that the house they are going to buy maybe.. just MAYBE can be paid with one income? Being pregnant shouldn't matter. Being able to afford the payments should. And if the couple decides that the mom should stay home and watch the children because it's cheaper then getting daycare etc. It shouldn't matter to the banker at all. That's a decision between husband & wife. As long as the couple can pay their mortgage it's none of the bankers damn business.

 

Again, I'll point out, yes the mortgage may have been based on two incomes, but what if they found the house that they knew they could afford only on ONE income even though two were calculated?

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I don't see the big deal. If banks have always done this, we wouldn't be in the situation (I HATE that word now, thanks, Jersey Shore <_< )we're in. You have to have a job to make money usually. Being pregnant/a parent doesn't pay. It doesn't qualify as a job. If you don't make money, what is your basis for repayment?

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“If you are not back at work, it’s a huge problem,” said Rick Cason, owner of Integrity Mortgage, a mortgage firm in Orlando, Fla. “Banks only deal in guaranteed income these days. It makes sense, but the guidelines are sometimes actually harsher than they need to be.”

 

I disagree. The number of mothers who fail to return to work is high. Many families find that taking care of the child(ren) full time is a better value for them than the spouse returning to work. However, if they are in a recent mortgage that was based on two incomes, it could put the family in a difficult position. One that compromises their ability to fulfill their responsibility to the bank.

Bleeding-heart banking is what got us in this mess in the first place. Selling only to people truly capable of paying their obligations is the only thing that can get us out. Banks should have taken steps like these decades ago, but were pressured from our elected officials to do otherwise.

 

I've just Amazon'd All the Devils are Here and can't wait to get it, but I wanted to say that the banks were also getting big bucks for selling to the high risk buyers. They actually got paid more for doing it.

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Um yeah. There were a lot of reasons we got into the financial mess we're currently in. "Bleeding Heart Banking"? Seriously? Banks and Bankers do not give two chits about "the people". They were deregulated and proceeded to make the system butt-sore in as many ways possible to make as much profit as possible. Period. End of Story. Bankers and Wall Street got richer and we suffered more.

 

But whatever. :rolleyes:

 

BTW if women can't get a mortgage because she "may some day, possibly" get pregnant, then males shouldn't get them either. A man could just as easily be out there making several babies a day (with good stamina ;) ).

 

 

ETA - brain no worky.

Edited by Nemeweh

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Um yeah. There were a lot of reasons we got into the financial mess we're currently in. "Bleeding Heart Banking"? Seriously? Banks and Bankers do not give two chits about "the people". They were deregulated and proceeded to make the system butt-sore in as many ways possible to make as much profit as possible. Period. End of Story. Bankers and Wall Street got richer and we suffered more.

 

But whatever. :rolleyes:

 

BTW if women can't get a mortgage because she "may some day, possibly" get pregnant, then males shouldn't get them either. A man could just as easily be out there making several babies a day (with good stamina ;) ).

 

 

ETA - brain no worky.

 

That is exactly what I am saying. (er...the other, not the "brain no worky" part :lol:)

If they are looking at "well she is pregnant" part....what about the "well, she might get pregnant one day and decide to stay home".....but I bet you dimes to doughnuts that they won't say...."well, he might knock someone up and have to pay child support".

 

Or, how long before..."Well, she is pregnant, she is going to have a kid....kids are expensive, what if it is sicky....they won't be able to afford their mortgage due to medical bills" .......

 

Or how long before....."Well, he has a family history of Cancer....he might get cancer before the mortgage is paid off.

 

Home loans have always been risky....they always will be risky if for no other reason that they are so long.

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How is this legal... I think discriminating against pregnancy status is like discriminating against race or sexuality.

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When my mom and dad bought their house in the mid-60's, they had to settle for the one they have now instead of their dream home, because even though my mom was a butcher for Krogers and made more than my dad, they refused to consider her income because "when" she got pregnant, she "would" quit her job. :angry:

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When my mom and dad bought their house in the mid-60's, they had to settle for the one they have now instead of their dream home, because even though my mom was a butcher for Krogers and made more than my dad, they refused to consider her income because "when" she got pregnant, she "would" quit her job. :angry:

 

The 60's were a little bit different than today. And yes, back then, many women did quit their jobs...either after they got married or after they got pregnant. Even up until the late 70s women's income was usually considered as "disposable income" as opposed to being a core portion of the family income.

 

Sad isn't it.

 

But you know, this isn't the 1960's. A woman's reproduction status shouldn't come into play.

 

However....on the flip side....I think it might be smart for people today to try to get a home that would be in the budget of one income, especially with the economy like it is. Unfortunately, with the aftermath of the "Bubble", most houses are either over-inflated in value, or are otherwise out of reach of a one-income family.

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Unfortunately, with the aftermath of the "Bubble", most houses are either over-inflated in value, or are otherwise out of reach of a one-income family.

Home values are in the tank. :dntknw:

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Unfortunately, with the aftermath of the "Bubble", most houses are either over-inflated in value, or are otherwise out of reach of a one-income family.

Home values are in the tank. :dntknw:

 

 

Yep.

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Unfortunately, with the aftermath of the "Bubble", most houses are either over-inflated in value, or are otherwise out of reach of a one-income family.

Home values are in the tank. :dntknw:

 

in the tank, or just corrected from the bubble?

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Unfortunately, with the aftermath of the "Bubble", most houses are either over-inflated in value, or are otherwise out of reach of a one-income family.

Home values are in the tank. :dntknw:

 

in the tank, or just corrected from the bubble?

I would say lower than where they should be, due to the huge amount of foreclosures and short sale properties out there. But I could be wrong, too.

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I think it's discriminatory. It's none of the bank's business if and when and how you decide to have kids. There are TOO many factors that go into how and why a person/family can or can't afford a mortgage.

 

ETA: we bought a foreclosure and our house appraised ABOVE what we bought it for by 20k. The loan officer said that was huge, esp in this market. This same exact house is for sale on the street over from us for 60k more than what we paid in Aug. Another house has sold since we bought this and it is smaller than ours, sold for $15k more than ours...I think it totally depends on where you are.

Edited by NeverQuietHere

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Home values are in the tank. :dntknw:

 

Not everywhere. In this area, many condos tanked. The ones near the U of F still sell for good prices.

 

With regards to homes in this area, depending on the neighborhood or location, some foreclosures sell in a day or two and for not much less than regular sales.

 

I hear all the time how lucky this city is, with regards to foreclosures.

 

Also, many of the homes in foreclosure were not purchased at the height of the market, so loose lending and such were not the direct cause of those foreclosures.

 

 

ETA: In the past year, some homes went up for sale (at near peak prices) in my neighborhood. They all sold quickly and at or near asking price. I have a friend who is still pissy, because he thought the market would allow him to get one of the homes for next to nothing. His lowball offer was not even close.

 

The next county over is ravaged by foreclosures. You can get a brand new (never lived in) foreclosure. 1800+ sq/ft for $40,000-50,000. These are homes on nice lots and in good neighborhoods.

Edited by orangecrush

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Home values are in the tank. :dntknw:

 

Not everywhere. In this area, many condos tanked. The ones near the U of F still sell for good prices.

 

 

I agree with OC.

 

My old neighborhood in Katy, TX has stayed relatively stable. I was able to sell my house in 21 days for about what I paid for it. (I'd only owned it for 3 years...so I pretty much bought right before the bubble burst).

 

I know some areas of the country got hit pretty hard though.

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Well, If bankers are only dealing with "guaranteed income".....

Then everyone is in a whole lot of trouble. ;)

 

Yeah, we are. Banks have just begun to tighten up.

 

Right, however how do you know that the house they are going to buy maybe.. just MAYBE can be paid with one income?

 

If that was their plan, they they should have run the mortgage off of one income. Applying with 2 incomes with the foreknowledge that they could only have one income constitutes fraud.

 

"Bleeding Heart Banking"? Seriously? Banks and Bankers do not give two chits about "the people".

 

Exactly. Thats why it was such a mistake for our elected officials to encourage banks to lend to people they knew would fail to pay their mortgages. In the name of promoting home-ownership for races and classes that needed 'a hand up'. It was 'known' that when (not if) those people defaulted, the govt would bail the banks out. Probably with some sort of of big bank bailout.

 

I bought a house a month ago. The value is just fine. Its been common knowledge for years, including during the bubble, that the bubble was huge and would be a big problem when it burst. Buyers during that period should have done due dilligence on the biggest purchase of their life, and incorporated the bubble into their plans.

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